Ripple’s native token, XRP, has captured significant attention within the cryptocurrency community due to its remarkable rally in recent days. However, the momentum may be facing challenges, as indicated by recent market activities and expert analyses.
XRP Whale Moves 20 Million Tokens to Upbit
On November 24, 2024, a significant transaction caught the eye of many in the crypto sphere. A whale alert was issued on X (formerly known as Twitter), highlighting a massive transfer of 20 million XRP tokens, valued at $27.24 million, to Bybit, South Korea’s leading cryptocurrency exchange. This substantial dump coincided with a broader market correction, during which XRP was also experiencing its own struggles. Consequently, XRP’s daily chart now shows a bearish trend, hinting at a potential price correction.
XRP Technical Analysis and Upcoming Levels
Technical analysts have identified a bearish evening star candlestick pattern forming near the $1.40 breakout level for XRP. Should this pattern complete and the daily candle close below $1.30, the altcoin could experience a 20% decline, potentially reaching $1.05 in the coming days. Despite this, XRP has recently undergone a parabolic rise, suggesting that a period of consolidation may be necessary to maintain momentum.
Currently, XRP is trading above the 200-day Exponential Moving Average (EMA), indicating an ongoing uptrend. Nonetheless, the Relative Strength Index (RSI) has consistently been above 80 since November 11, 2024, suggesting overbought conditions, which could limit further upward movement.
Traders’ Sentiment: Bullish or Bearish?
Beyond whale transactions, the sentiment among traders is a critical factor. Data from Coinglass, an on-chain analytics firm, reveals that traders are heavily leveraged, with significant price levels at $1.325 on the downside and $1.379 on the upside. Additionally, Coinglass’s exchange liquidation map shows that long positions worth $10.76 million are held at the lower level, while short positions worth $12.41 million are concentrated at the upper level. This data suggests that there is a higher proportion of sell-side traders, which might precipitate a price drop in the near future.
Current Price Momentum
As of the latest update, XRP is trading around $1.38, reflecting a 7.10% decline in the last 24 hours. This downturn is accompanied by a 30% decrease in trading volume, indicating reduced engagement from traders and investors compared to the previous day.
In conclusion, while XRP’s recent rally has been impressive, the current market indicators suggest caution. Investors and traders should closely monitor these developments, as they could significantly impact XRP’s short-term trajectory.
